overbook - mean 20 stdev 5 overage cost $100 overbook...

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Unformatted text preview: mean 20 stdev 5 overage cost $100 overbook underage $200 1 2 No-shows #NAME? 3 4 tickets issued #NAME? 5 6 airplane cap 100 7 8 overbook #NAME? 9 10 turned back #NAME? 11 cost of turn-back #NAME? 12 13 empty seats #NAME? 14 cost of empty seats #NAME? 15 16 total cost #NAME? 17 18 19 20 21 22 23 24 critical ratio 0.67 25 26 optimal overbook 22.15 27 28 Optimal tickets sold 122 29 30 31 32 33 34 35 36 37 38 39 40 An airline carries airplanes which can hold up to 100 passengers. The airline wishes to sell more than 100 tickets at $200 per ticket. Each passenger who has paid for a ticket and shows up after all the seats are assigned is entitled to a full refund plus $100 compensation. What amount of overbooking is optimal for the airline? Assume that that the number of passengers that won't show up follows Normal distribution with rate of mean 25 and standard deviation of 5. Farid Alizadeh: The optimal value is obtained by using the critical method, and assuming normal distribution with mean 20 and standard deviation of 5 YASAI Simulation Output Workbook overbook.xls YASAI Version: 2 Sheet airline overbook Use Same Seed? Yes Start Date 11/23/2008 Random Number Seed: 84038.61 Start Time 11:20:38 PM Run Time (h:mm:ss) 0:00:09 Scenarios: 40 Sample Size: 1000 Parameter Scenario tickets issued 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 Output Name Scenario Observations Mean Minimum total cost 1 1000 3812.545 941.463 394.120 total cost 2 1000 3612.545 941.463 194.120 total cost 3 1000 3412.553 941.431 2.940 total cost 4 1000 3212.853 940.391 102.940 total cost 5 1000 3013.153 939.445 202.940 total cost 6 1000 2813.453 938.594 17.075 total cost 7 1000 2614.173 936.651 48.253 total cost 8 1000 2415.225 934.055 3.160 total cost 9 1000 2217.254 929.418 12.173 total cost 10 1000 2021.094 921.350 11.017 total cost 11 1000 1827.703 908.759 15.729 total cost 12 1000 1638.227 890.804 2.678 total cost 13 1000 1454.966 865.236 2.018 total cost 14 1000 1280.519 830.596 0.088 total cost 15 1000 1116.665 787.788 3.496 total cost 16 1000 969.349 732.814 0.193 total cost 17 1000 838.623 670.996 2.074 total cost 18 1000 725.917 606.523 1.767 total cost 19 1000 637.059 538.931 0.903 total cost 20 1000 572.037 475.412 0.705 total cost 21 1000 533.389 419.667 0.361 total cost 22 1000 518.407 380.115 1.624 total cost 23 1000 523.760 364.025 0.242 total cost 24 1000 550.422 366.536 1.528 total cost 25 1000 596.643 379.931 0.602 total cost 26 1000 654.983 404.823 0.430 total cost 27 1000 728.002 427.011 1.895 total cost 28 1000 811.752 443.912 1.064 total cost 29 1000 902.082 456.556 0.049 total cost 30 1000 996.888 464.872 5.911 total cost 31 1000 1095.374 467.266 22.465 total cost 32 1000 1194.474 468.958 4.472 total cost 33 1000 1293.992 470.028 41.839 total cost 34 1000 1393.728 470.732 11.786 total cost...
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This note was uploaded on 12/17/2010 for the course MSIS 623:386 taught by Professor Markowitz during the Fall '09 term at Rutgers.

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overbook - mean 20 stdev 5 overage cost $100 overbook...

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